Partially upheld: unauthorised transaction / poor customer service / failure to provide prior notice complaint against IG Trading and Investments Limited
Financial Ombudsman decision DRN-6362639 of 2026-05-15T00:00:00+00:00. unauthorised transaction / poor customer service / failure to provide prior notice complaint against IG Trading and Investments Limited. Outcome: Partially upheld.
Decision detail
| Reference | DRN-6362639 |
|---|---|
| Decision date | 2026-05-15T00:00:00+00:00 |
| Firm | IG Trading and Investments Limited |
| Product | investment dealing account |
| Claim type | unauthorised transaction / poor customer service / failure to provide prior notice |
| Outcome | Partially upheld |
| Remedy | IG Trading and Investments Limited directed to pay Ms C £300 in compensation for distress and inconvenience caused by communication failures and errors in handling the complaint. |
Summary
Ms C complained that IG sold her exchange traded product shares worth approximately $50,000 without authorisation to cover outstanding account fees. IG initially denied the sale was unauthorised, then admitted it was an automated sale, but took over four months to explain this and provided incorrect information for weeks, stating Ms C had placed the trade herself. The shares had declined 99.53% in value by the time of sale due to market performance. The ombudsman found IG's failure to provide prior notice (when it had done so on Ms C's other account) was not fairly reasoned, but concluded this did not cause the financial loss as the decline was due to market performance. The ombudsman upheld the complaint regarding communication failures and distress caused, awarding £300 compensation, but rejected the claim for investment loss compensation.
The Ombudsman's reasoning
While IG had contractual rights to sell assets to cover fees without notice, the ombudsman found it was not acting fairly and reasonably by failing to give notice when it had done so on Ms C's other account. However, the ombudsman concluded that even if IG erred in not giving notice, this did not cause the financial loss Ms C suffered, as the 99%+ decline in the asset's value was due to market performance, not IG's actions. The sale crystallised but did not cause the loss. The ombudsman found significant failings in IG's communications, taking over four months to explain the true position and providing incorrect information for weeks, which caused distress and inconvenience. The ombudsman rejected Ms C's claim for reinstatement or compensation for the investment loss, noting she had the opportunity to mitigate by repurchasing at similar prices after learning the truth in September 2025.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| IG Trading and Investments Limited, all decisions | 13 | 38% |
Source
Read the original decision on the Financial Ombudsman Service website